Yes you have to install this in local machine or server.
once you installed you have to update web blocker database.
http://www.watchguard.com/help/docs/edge/10/en-US/index_Left.html#CSHID=en-US%2Fservices%2Fwebblocker%2Fwebblocker_configure_local_server_e.html|StartTopic=Content%2Fen-US%2Fservices%2Fwebblocker%2Fwebblocker_configure_local_server_e.html|SkinName=Edge%20%28en-US%29

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